BlackRock partners with Rhodium on climate analytics
Climate risk is investment risk, yet limited data and technology focused on climate risk make it challenging to quantify and act on. As a leader in financial technology and risk analytics, we are committed to addressing this need, and to empowering our clients to build more sustainable portfolios as a result.
BlackRock has partnered with Rhodium Group to tackle a data challenge on the physical impacts of climate change. An independent research firm, Rhodium Group uses climate science, economics, big data and cloud computing to provide evidence-based insights into climate scenarios. Paired with our leadership in financial modeling and the power of Aladdin as a platform, Rhodium’s data allows us to develop vital new risk capabilities for our clients and for the industry.
This partnership deepens a collaboration that began in April 2019. Last year, our work with Rhodium produced a pilot study on the physical risks of climate change in the US, the results of which were published in the award-winning BlackRock Investment Institute report, “Getting Physical.” The research set a new standard for isolating the financial impacts of physical climate risk and providing actionable insights to investors looking to understand climate risk in their portfolios.
BlackRock financial modelers continue to work closely with Rhodium to define datasets for use in BlackRock’s new physical risk models. This work will power new Aladdin capabilities and add new risk metrics to our modeling platform. We will extend our research across asset classes and geographies over the course of this year.
